What is the role of the principal broker?

The role of the principal broker primarily encompasses acting as a supervising broker. This position involves being responsible for the overall operations of a real estate brokerage and ensuring compliance with state laws and regulations. The principal broker supervises the actions of all licensed agents and other brokers within the firm, providing guidance and oversight to help maintain ethical standards and facilitate successful transactions.

Additionally, they must ensure that their associates are complying with legal obligations and following industry best practices. This supervisory role is vital, as it helps protect clients and uphold the integrity of the real estate profession.

While managing branch offices, conducting training sessions, and overseeing commissions and bonuses can be important functions within a brokerage, they are not the primary responsibilities designated to the principal broker. Each of these duties may be part of a broker's broader responsibilities but do not fully encompass the key role of being a supervising broker.